Deutsche Bank Maintains a 'Buy' on McDonald's (MCD); Cutting Estimates After More Cautious Tone

Deutsche Bank maintains a 'Buy' on McDonald's (NYSE: MCD) price target of $108.00.

Deutsche analyst said, "MCD posted another strong headline SSS result for Feb (+7.5%), the 4th month in a row above 6% globally. However, Feb missed DB and consensus due to softness in Europe and APMEA. MCD also took the rare step of "talking down" earnings for the current qtr, with limited explanation."

"We are lowering our 1Q/2012 EPS estimate to $1.19/$5.56 from $1.24/$5.61 previously, based on a more cautious tone around 1Q from MCD. MCD noted in the Feb sales release that economic uncertainty and austerity measures in Europe, and commodity/labor costs in the US will weigh on 1Q earnings. While it’s unclear how severe these pressures will be, we believe strong SSS QTD (+7.1%) suggest profits can grow in 1Q."


For an analyst ratings summary and ratings history on McDonald's click here. For more ratings news on McDonald's click here.

Shares of McDonald's closed at $96.84 yesterday.

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